Gateway Development and U.S. Navy Break Ground on $43-Mil Housing Project

EVERETT, WA-Gateway Development Group has just broken ground here on a 288-unit townhome project adjacent to the Smoky Point Naval Support Complex. Carroll’s Creek Landing, situated on 58 acres ten miles north of Everett, is a 30-year joint venture between Gateway and the U.S. Navy, which will cooperatively own and operate the rentals, aimed at providing additional lower-cost housing for military personnel at the Naval station here. For its contribution to the $43 million development cost, the Navy will pony up $12 million.

In 1996, the National Defense Authorization Act was put in place, allowing partnerships between the military and private developers to refurbish 300,000 units of older military housing and to construct another 300,000 units. About three years ago, Gateway was formed specifically to target that market. It is a partnership between Pinnacle Realty Management Co. (owned by John Goodman and Stan Harrelson of Seattle) and former military advisor Dan Lund. As lead consultant, Lund, of Annapolis, Md., were instrumental in writing the privatization plan for the military.

Stan Harrelson, president and CEO of Pinnacle tells GlobeSt that as a service provider involved in managing residential properties across the country, military housing was “a natural alignment.” Pinnacle believed its managerial expertise could alleviate one of the main criticisms of military housing: lack of customer service.